Joe's Supply Co. has the following transactions related to notes receivable during the last 2 months of 2014. Nov. 1 Loaned $20,000 cash to Sara Rondelli on a 1-year, 12% note. Dec. 11 Sold goods to Phair, Inc., receiving a $11,700, 90-day, 8% note. 16 Received an $12,000, 6-month, 9% note in exchange for Grace Tanner's outstanding accounts receivable. 31 Accrued interest revenue on all notes receivable. Instructions (a) Journalize the transactions for Joe's Supply Co. (b) Record the collection of the Rondelli note at its maturity in 2015.
Question 5: South Airlines purchased a 747 aircraft on January 1, 2013, at a cost of $35,000,000. The estimated useful life of the aircraft is 20 years, with an estimated salvage value of $5,000,000. On January 1, 2016 the airline revises the total estimated useful life to 15 years with a revised salvage value of $3,500,000. Instructions (a) Compute the depreciation and book value at December 31, 2015 using the straight-line method and the double-declining-balance method. (b) Assuming the straight-line method is used, compute the depreciation expense for the year ended December 31, 2016.